April to March 2022

A quick look at the contribution of the manufacturing sector to the country’s GVA indicates that traditionally the sector contributed 16% to the GVA. This has reduced to 15% in FY20-21 given the covid pandemic situation; however, rebounded to 15.5% in FY21-22. Further, the Electrical and Allied Electronics industry’s contribution to the manufacturing sector remained at 6.2% with about 45% share in Capital Goods sector.

Status of Power Equipment Industry growth in FY2021-22

Reflection of growth in power sector, continuous investment, and support from the Govt. to further develop the sector can be seen in electrical equipment industry., power equipment industry in FY2021-22 witnessed a V-shape recovery and registered a growth of 17% over FY2020-21; a pandemic affected year. The growth in 2021- 22 was 9% if it is compared with normal pre-covid year of FY2019-20
In FY21-22, industry has clocked consistent double digit growth on Q-o-Q basis over FY20-21
The above data is based on production/ sales data collected from member organizations, which represent over 90 percent of the entire electrical equipment installed in India coupled with detail analysis non-member segment. Due to inflationary pressure created due to fluctuations and surge in almost all metal and non-metal raw material prices/components etc., the value growth in the industry is estimated to surpass 30% during FY21-22 over last year.

Status of Power Equipment Industry growth in FY2021-22

Transmission equipment:

  1. Demand for Transmission equipment covering Transmission line towers and Conductors is stagnant due to pick up in Export orders; domestic supply declining.
  2. Insulators have declined mainly due to decline in sales in Q4; mainly for Long rod and Hollow type whereas Surge Arrester showing a growth of about 13% due to pick up in off-take from major utilities and CPSUs like PGCIL

Sub-station equipment:

  1. 56% growth in High voltage switchgears is mainly from HV & EHV GIS and MV AIS segment; mostly from domestic demand coming from state utilities and CPSUs for increasing the sub-station network.
  2. Marginal 4.5% decline in Power and Distribution Transformers due to sluggish demand domestically
  3. LV and MV & HV Power Cables are witnessing a growth of about 32% due to renewed domestic demand with support of increased export orders. LD / HW Cables showing 17% jump in demand due to pick up in real estate sector
  4. HT Capacitors production has declined by 3% despite sizable growth in Exports due to subdued domestic demand. LT Capacitor demand surges due to domestic & export order growth

Distribution equipment:

  1. Energy Meters demand especially for Smart prepaid meters is coming back in this year due to increased export orders and some order finalizations showing a growth of 11% over a very low base of previous year; however, this demand is still down by over 33% as compared to pre-covid period.
  2. Low Voltage switchgear has continued its growth trend from last year registering 26% growth due to sustained demand from Realty, Infrastructure & other manufacturing industries as well as exports
  3. Similarly, rotating machines segment also riding high on growth of 24%; mainly due to effect of policy change of replacing old inefficient motors with minimum IE2 standard high efficient motors. Core sectors like Cement, Steel, Water etc. are major drivers for the same.

India’s Exports and Imports scenario

  • overall Exports have increased by 25% last year (13% CAGR over past 5 years), Major products exported – Rotating Machines, Power Electronics, Switchgear & Panels, Transformers, Cable & TLT Exporting Countries – USA, UAE, Germany, UK, Bangladesh
  • Imports have also surged by 28% (8% CAGR over past 5 years) especially for Transformers & parts, LV and HV Cables, LV & HV Custom built products like Control panels, MCC, PCC, rotating machines & parts, Insulating fittings etc.
  • China still accounts for more than 37% share in Imports increased from 35% followed by Germany and Japan.

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